Worrells

CORPORATE INSOLVENCY

Holding first voluntary administration meeting: within 8 business days after the administration begins.

Convening period to call second voluntary administration meeting:20 business days from first business day after appointment.

Extension to convening period: If the day after the administration begins is in December or is less than 25 business days before Good Friday, 25 business days beginning on that day, or if not next business day.

Holding Second voluntary administration meeting: within 5 business days before or after the end of the convening period.

Holding initial creditors voluntary liquidation meeting: within 11 days after appointment allowing for 7 days notice.

Holding other liquidation meetings: At any time during appointment with 10 business days notice.

Final Meetings in voluntary liquidations: At end of appointment with 1 month notice.

Excluded Employees: Excluded employees can only receive $2,000 in relation to wages and $1,500 in relation to leave entitlements in priority to non-employee creditors. They will not receive a priority dividend for other entitlements.

Non-excluded employee:No Limit. Non-excluded employees (not related to the directors) can receive their full entitlements.

Official liquidation is a process of a Court ordering the winding up of a company's affairs and the appointment of a liquidator in order to provide for a dismantling of a company's affairs and a fair distribution to creditors. Read more »

Voluntary Administration is designed to assist companies to either come to a formal arrangement with their creditors to pay their debts, or are quickly and inexpensively placed into liquidation. Read more »

The Personal Property Securities Act (PPSA) came into operation on 30 January 2012 and replaced a number of provisions in the Corporations Act dealing with the registration and exercising of securities over assets. The operations of the PPSA are significant in the event of the appointment of an external administrator or trustee. Read more »

Since June 1993 the ATO has had the power to collect outstanding PAYG tax and from 30 June 2012; outstanding superannuation. Making directors liable for a penalty in the same amount as the unpaid tax and superannuation. Read more »

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Disclaimer

The enclosed information is of necessity a brief overview and it is not intended that readers should rely wholly on information contained herein. No warranty express or implied is given in respect of information provided and accordingly no responsibility is taken by Worrells or any member of the firm for any loss resulting from any error or omission contained within this website.

Liability limited by a scheme approved under Professional Standards Legislation.